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Business / Economy

Rush to set up own businesses a worry

(chinadaily.com.cn) Updated: 2015-06-12 14:12

Q3. What are your biggest concerns regarding the economy?

A: Personally, I am most concerned about the rush of setting up people's own businesses which might result in a surplus in the future. Undoubtedly, more opportunities are provided to those who wish to establish their own businesses under the economic New Normal. Government will also give more support and help in this regard. But government's guidance would lead to homogenization sometimes. The current overcapacity of alternative energy industry is one of the examples.

Based on past experiences, it is extremely difficult to make one's business a success. If there is not enough support to minor- and small-sized enterprises, there would incur a waste of social resources one more time. The increased number of people who are setting up their own businesses will also lead to the lack of professional managers and hamper the development of large companies.

Q4. With construction and manufacturing sectors experiencing a slowdown, what are some of the major growth drivers the government should focus on to help boost the economy?

A: First, I think the government should focus on the completion of an inclusive financial system. Premier Li Keqiang's visit to Shenzhen WeBank in January this year is a positive signal to Internet inclusive financial system. With the growing number of new entrepreneurs, minor- and small-sized enterprises will become the mainstream. Only the development of the inclusive financial system will inject more vitality into these companies.

Second, we are now faced with an outburst of new technologies. The government should focus more on the development of new technologies by providing help to products working on Internet innovation and strengthening supervision.

Q5. Instead of solely focusing on GDP numbers, the government is now looking at sustainable growth. Do you think with the focus shifting, China will see a more substantive, all-round development?

A: One of the highlights of China's economy is that the quality has been largely enhanced. In the first quarter, service industry contributed 51.6 percent to the country's GDP. The growth rate of high technology and equipment manufacturing was faster than that of industry by 5 percent and 1.3 percent respectively. China has made great efforts in achieving sustained growth.

However, the companies which are heavily reliant on natural resources still take up a majority of China's economy even though their contribution to the country's GDP has reduced to 49.6 percent. I am quite confident with China's sustained economic growth. But it might take quite a long time.

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